Note 3 - Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 3.   Income Taxes

Major components of our income tax provision (benefit) for the three and six months ended June 30, 2015 and 2014 are as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Current:
Domestic	$	1,768		$	(1,192	)	$	1,865		$	5,307
Foreign		(553	)		227			155			383
Total current income tax provision (benefit)		1,215			(965	)		2,020			5,690
Deferred:
Domestic		1,167			(3,886	)		3,588			(7,016	)
Foreign		(2,514	)		(174	)		(4,301	)		84
Total deferred income tax benefit		(1,347	)		(4,060	)		(713	)		(6,932	)
Total income tax provision (benefit)	$	(132	)	$	(5,025	)	$	1,307		$	(1,242	)

As of June 30, 2015, we have a net deferred tax asset in the U.S. of $114.5 million and a net deferred tax liability in Canada of $138.1 million for a consolidated worldwide net deferred tax liability of $23.6 million. Our ability to utilize our deferred tax assets depends on future taxable income generated from operations within the United States; valuation allowances are provided for that portion of our deferred tax assets for which we believe it is more likely than not that we will not realize a benefit. This judgement is based on several assumptions and estimates including life-of-mine operating plans and our estimates of future metals prices. At June 30, 2015 and December 31, 2014, the balances of the valuation allowances on our deferred tax assets were $38 million and $32 million, respectively, primarily for foreign net operating loss carryforwards. 

The current income tax provisions for the three and six months ended June 30, 2015 and 2014 vary from the amounts that would have resulted from applying the statutory income tax rate to pre-tax income primarily due to the effects of percentage depletion for all periods presented and the impact of taxation in foreign jurisdictions.